UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

 

For the Quarter ended June 30, 2020

 

Commission File Number: 333-209478

 

ALLYME GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Nevada		32-0446353
(State of organization)		(I.R.S. Employer Identification No.)

 

10250 Constellation Blvd., Suite 100, Los Angeles, CA 90067

(Address of principal executive offices)

 

+1 (778) 888-2886

Registrant’s telephone number, including area code

 

n/a

Former address if changed since last report

 

Securities registered under Section 12(b) of the Exchange Act: None

 

Title of each Class		Ticker Symbol		Name of each exchange on which registered
Common Stock, par value $0.001		WWIN		Pink Sheets

 

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [  ] No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 and Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes [  ] No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer [  ]

Accelerated Filer [  ]

Non-Accelerated Filer [X]   Emerging Growth Company [  ]

Smaller Reporting Company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

 

There are 8,958,989 shares of common stock outstanding as of September 16, 2020.

 

 

 

TABLE OF CONTENTS

 

	PART I - FINANCIAL INFORMATION
ITEM 1.	INTERIM FINANCIAL STATEMENTS	3
ITEM 2.	MANAGEMENT’S DISCUSSION OF OPERATIONS AND FINANCIAL CONDITION	12
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	15
ITEM 4.	CONTROLS AND PROCEDURES	15
	PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	15
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES	16
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	16
ITEM 4.	MINE SAFETY DISCLOSURES	16
ITEM 5.	OTHER INFORMATION	16
ITEM 6.	EXHIBITS	16
SIGNATURES		17

 

 

PART I–FINANCIAL INFORMATION

 

ITEM 1. INTERIM FINANCIAL STATEMENTS

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		June 30, 2020				December 31, 2019
ASSETS
Current Assets
Cash and cash equivalents		$	153,241			$	418,229
Prepaid expenses			533				6,458
Other receivable, net			2,988				14,146
Loan receivable from a related party			75,441				76,561
Total Current Assets			232,203				515,394
Total Assets		$	232,203			$	515,394
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities		$	16,781			$	10,963
Customer deposit			-				507,114
Other payable			25,912				54,106
Loan from an unrelated party			2,831				2,873
Due to related parties			85,108				92,152
Total Current Liabilities			130,632				667,208
Total Liabilities			130,632				667,208
Commitment and Contingencies		$	-			$	-
Stockholders’ Deficit
Common stock, par value $0.001, 75,000,000 shares authorized 8,958,989 and 8,956,191 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively			8,959				8,956
Additional paid in capital			180,729				177,654
Accumulated deficit			(168,661	)			(282,575	)
Accumulated other comprehensive loss			(7,802	)			(2,609	)
Total Wewin Group Corp.’s deficit			13,225				(98,574	)
Non-controlling interest			88,346				(53,240	)
Total stockholders’ deficit			101,571				(151,814	)
Total Liabilities and Stockholders’ Deficit		$	232,203			$	515,394

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

 

		For the three months ended June 30,								For the six months ended June 30,
		2020				2019				2020				2019
Revenue		$	346,059			$	5,000			$	346,059			$	5,000
Cost of Revenues			25,030				-				25,030				-
Gross Profit			321,029				5,000				321,029				5,000
Operating expenses
General and administrative			64,932				48,231				85,793				105,574
Operating expenses			64,932				48,231				85,793				105,574
Income (loss) from operations			256,097				(43,231	)			235,236				(100,574	)
Other income (expense)
Other income			21,330				-				21,349				-
Interest income			47				17				279				39
Bank charges			(178	)			(224	)			(2,237	)			(336	)
Other income (expense), net			21,199				(207	)			19,391				(297	)
Net income (loss) before income taxes			277,296				(43,438	)			254,627				(100,871	)
Income Tax Expense			-				-				-				-
Net Income (loss)		$	277,296			$	(43,438	)		$	254,627			$	(100,871	)
Less: net income (loss) attributable to non-controlling interest			144,368				(1,793	)			140,713				(13,597	)
Net income (loss) attributable to Allyme Group, Inc.		$	132,928			$	(41,645	)		$	113,914			$	(87,274	)
Other comprehensive income
Foreign currency translation gain (loss)			3,575				(171	)			(4,320	)			606
Total comprehensive income (loss)		$	280,871			$	(43,609	)		$	250,307			$	(100,265	)
Comprehensive income (loss) attributable to non-controlling interest			144,228				(1,793	)			141,586				(13,597	)
Comprehensive income (loss) attributable to Allyme Group, Inc.		$	136,643			$	(41,816	)		$	108,721			$	(86,668	)
Net income (loss) per share - basic and diluted		$	0.01			$	(0.00	)		$	0.01			$	(0.01	)
Weighted average shares- basic and diluted			8,957,298				8,945,060				8,956,744				8,944,977

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

 

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

FOR THE QUARTER ENDED JUNE 30, 2020 AND 2019

(UNAUDITED)

 

		Common Stock								Additional Paid-in				Shares to be				Accumulated				Subscription				Accumulated Other Comprehensive				Noncontrolling				Stockholders’ Deficit and Non Controlling
		Shares				Amount				Capital				issued				Deficit				Receivable				Income				Interest				Interest
Balance March 31, 2020			8,956,191			$	8,956			$	177,654			$	3,078			$	(301,589	)		$	-			$	(11,517	)		$	(55,882	)		$	(179,300	)
Issue common stock for cash			2,798				3				3,075				-				-				-				-				-				3,078
Shraes to be issued			-				-				-				(3,078	)			-				-				-				-				(3,078	)
Net loss			-				-				-				-				277,296				-				-				-				277,296
Non-controlling interest			-				-				-				-				(144,368	)			-				140				144,228				0
Foreign currency translation adjustment			-				-				-				-				-				-				3,575				-				3,575
Balance June 30, 2020			8,958,989			$	8,959			$	180,729			$	-			$	(168,661	)		$	-			$	(7,802	)		$	88,346			$	101,571

 

		Common Stock								Additional Paid-in				Shares to be				Accumulated				Subscription				Accumulated Other Comprehensive				Noncontrolling				Stockholders’ Deficit and Non Controlling
		Shares				Amount				Capital				issued				Deficit				Receivable				Income				Interest				Interest
Balance March 31, 2019			8,944,060			$	8,944			$	159,579			$	1,100			$	(188,395	)		$	-			$	2,272			$	(28,483	)		$	(44,983	)
Issue common stock for cash			1,000				1				1,099				-				-				-				-				-				1,100
Shraes to be issued			-				-								(1,100	)			-				-				-				-				(1,100	)
Net loss			-				-								-				(43,438	)			-				-				-				(43,438	)
Non-controlling interest			-				-				-				-				1,793				-				-				(1,793	)			-
Foreign currency translation adjustment			-				-				-				-								-				(171	)			-				-171
Balance June 30, 2019			8,945,060			$	8,945			$	160,678			$	-			$	(230,040	)		$	-			$	2,101			$	(30,276	)		$	(88,592	)

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

FOR THE TWO QUARTERS ENDED JUNE 30, 2020 AND 2019

(UNAUDITED)

 

		Common Stock								Additional Paid-in				Shares to be				Accumulated				Subscription				Accumulated Other Comprehensive				Noncontrolling				Stockholders’ Deficit and Non Controlling
		Shares				Amount				Capital				issued				Deficit				Receivable				Income				Interest				Interest
Balance December 31, 2019			8,956,191			$	8,956			$	177,654			$	-			$	(282,575	)		$	-			$	(2,609	)		$	(53,240	)		$	(151,814	)
Issue common stock for cash			2,798				3				3,075				-				-				-				-				-				3,078
Net loss			-				-				-				-				254,627				-				-				-				254,627
Non-controlling interest			-				-				-				-				(140,713	)			-				(873	)			141,586				0
Foreign currency translation adjustment			-				-				-				-				-				-				(4,320	)			-				-4,320
Balance June 30, 2020			8,958,989			$	8,959			$	180,729			$	-			$	(168,661	)		$	-			$	(7,802	)		$	88,346			$	101,571

 

		Common Stock								Additional Paid-in				Shares to be				Accumulated				Subscription				Accumulated Other Comprehensive				Noncontrolling				Stockholders’ Deficit and Non Controlling
		Shares				Amount				Capital				issued				Deficit				Receivable				Income				Interest				Interest
Balance December 31, 2018			8,944,060			$	8,944			$	154,865			$	-			$	(142,766	)		$	(2,000	)		$	1,495			$	(16,679	)		$	3,859
Issue common stock for cash			1,000				1				5,813				-				-				-				-				-				5,814
Subscription receivable			-				-								-				-				2,000				-				-				2,000
Net loss			-				-				-				-				(100,871	)			-				-				-				(100,871	)
Non-controlling interest			-				-				-				-				13,597				-								(13,597	)			-
Foreign currency translation adjustment			-				-				-				-				-				-				606				-				606
Balance June 30, 2019			8,945,060			$	8,945			$	160,678			$	-			$	(230,040	)		$	-			$	2,101			$	(30,276	)		$	(88,592	)

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

 

ALLYME GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		For the six months ended June 30,
		2020				2019
OPERATING ACTIVITIES
Net loss		$	254,627			$	(100,871	)
Changes in Operating Assets and Liabilities:
Accounts payable and accrued liabilities			5,828				31,749
Account receivable			-				(3,571	)
Prepaid expenses			5,884				12,761
Other receivable			11,002				-
Other payable			(26,067	)			(5,562	)
Customer Deposit			(507,114	)			-
Net cash provided by(used in) operating activities			(255,840	)			(65,494	)
FINANCING ACTIVITIES
Payments for related party loans			(7,044	)			7,977
Shares issued for cash			-				7,814
Net cash (used in)provided by financing activities			(7,044	)			15,791
Effect of exchange rate fluctuation on cash and cash equivalents			(2,104	)			545
Net increase in cash			(264,988	)			(49,158	)
Cash, beginning of period			418,229				69,167
Cash, end of period		$	153,241			$	20,009
SUPPLEMENTAL DISCLOSURES:
Cash paid during the period for:
Income tax		$	-			$	-
Interest		$	-			$	-
Supplimental non-cash investing and financing activities
Common stock issued for proceeds received in prior period		$	3,078			$	-

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

 

 

ALLYME GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2020

(Unaudited)

 

NOTE 1 - ORGANIZATION AND BUSINESS OPERATIONS

 

Organization and Description of Business

 

AllyMe Group Inc. (“AllyMe US”, the “Company”, “we” or “us”) was incorporated under the laws of the State of Nevada on August 13, 2014 (“Inception”) and has adopted a December 31 fiscal year end. The Company provides consulting services in China principally focused on the business, marketing, financial consultancy and business modeling design and support.

 

Pursuant to an Agreement for the Purchase of Common Stock dated as of June 28, 2018, on July 17, 2018 Zilin Wang purchased 8,618,000 shares of Company Common Stock from Yonghua Kang (as representative of the seller). The shares purchased in this transaction represented 99.98% of the issued and outstanding shares of the Company. This resulted in a change of control of the Company.

 

Effective July 17, 2018, the Board of Directors accepted the resignation of Yonghua Kang as CEO and a director of the Company, Xinlong Liu as COO and a director of the Company, Huang Lei as Secretary of the Company, Aiyun Xu as CFO and a director of the Company, Shaochun Dong as a director of the Company and Dagen Cheng as a director of the Company and appointed Zilin Wang to serve as President, Secretary, Chief Executive Officer, Chief Financial Officer and Director until the next election of directors and appointment of officers or the appointment of his successor upon his resignation.

 

On September 13, 2018, the Company purchased 1,040,000 shares of common stock of AllyMe Groups, Inc., a Cayman Islands corporation (“AllyMe”) for a total consideration of $1,040. These shares comprised approximately 51% of the then issued and outstanding shares of common stock of AllyMe. AllyMe was formed on February 8, 2018 and is in the development stage. AllyMe issued 1,000,000 shares of common stock to Zilin Wang on April 13, 2018 for $100, which was received as of the reporting date. Zilin Wang was the principal shareholder of AllyMe and is also the principal shareholder of the Company.

 

On August 6, 2018, AllyMe established a wholly-owned subsidiary in China, China Info Technology Inc. (“China Info”).

 

On December 18, 2018, FINRA approved the change of the Company’s name from WeWin Group Corp to AllyMe Group, Inc. FINRA announced this change on its daily list on December 19, 2018 and the name change took effect at the open of business on December 20, 2018. The Company’s trading symbol will remain “WWIN.”

 

The outbreak of COVID19 coronavirus in China and in US starting from the beginning of 2020 has resulted reduction of working hours for the Company. The Company followed the restrictive measures implemented in China, by suspending operation and having employees’ work remotely during February and March 2020. The Company gradually resumed operation and production starting in April 2020. Other financial impact could occur though such potential impact is unknown at this time.

 

NOTE 2 – GOING CONCERN

 

The Company has incurred losses since inception (August 13, 2014) resulting in an accumulated deficit of $168,661 is as of June 30, 2020, and further losses are anticipated in the development of its business. The Company had a working capital deficit of $101,571 and an accumulated deficit of $168,661 as of June 30, 2020 and a working capital deficit of $151,814 and an accumulated deficit of $282,575 as of December 31, 2019. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company’s capital requirements will depend on many factors including the success of the Company’s development efforts and its efforts to raise capital. Management also believes the Company needs to raise additional capital for working capital purposes. There is no assurance that such financing will be available in the future. The conditions described above raise substantial doubt about our ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

 

The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors and, or, the private placement of common stock. However, there can be no assurances that management’s plans will be successful.

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Interim Financial Statements

 

The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2019.

 

Basis of Presentation

 

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company’s year-end is December 31.

 

Basis of consolidation

 

In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessary be indicative of annual results.

 

The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) on June 18, 2020 (“2019 Form 10-K.”

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Non-controlling interests

 

Non-controlling interests represents the individual shareholder’s proportionate share of 49% of equity interest in AllyMe and its 100% owned subsidiary, China Info.

 

Cash

 

Cash includes cash on hand and on deposit at banking institutions as well as all liquid short-term investments with original maturities of 90 days or less. Cash amounted to $153,241 and $418,229 as of June 30, 2020 and December 31, 2019, respectively. The Company’s cash held in bank accounts in the PRC amounted to $145,387 and $416,810 as of June 30, 2020 and December 31, 2019 respectively and is not protected by FDIC insurance or any other similar insurance. The Company’s bank account in the United States amounted to $7,854 and $1,419 and is protected by FDIC insurance up to $250,000.

 

 

Revenue

 

The Company generated revenue from consulting services. The Company provides consulting services in China principally focused on the business, marketing, financial consultancy and business modeling design and support. The Company primarily enters into arrangements for these services under fixed-price contracts. Revenues under fixed-price contracts are recognized upon delivery of services and products. The Company recognizes revenue when the Company has the right to invoice the customer using the allowable practical expedient under ASC 606-10-55-18 since the right to invoice the customer corresponds with the performance obligations completed.

 

Recent accounting pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable.

 

NOTE 4 – LOAN RECEIVABLE FROM A RELATED PARTY

 

Loan receivable from a related party Shenzhen Fenglian Financial Services Co., Ltd (“Shenzhen Fenglian”) amounted to $75,441 and $76,561 as of June 30, 2020 and December 31, 2019, respectively. The Company’s major shareholder Zilin Wang is also a major shareholder of Shenzhen Fenglian. In 2019, Shenzhen Fenglian signed three agreements with the Company. The Company manages money transferred from Shenzhen Fenglian. The Company and Shenzhen Fenglian should share any interest income on a 50% and 50% ratio. Loan receivable from a related party are interest free, without collateral, and due on demand.

 

NOTE 5 - CUSTOMER DEPOSIT

 

Customer deposit amounted to $0 and $507,114 as of June 30, 2020 and December 31, 2019, respectively. Customer deposit represents amount received from customers for services not rendered yet. The services have been provided as of June 30, 2020.

 

NOTE 6 – LOAN FROM AN UNRELATED PARTY

 

Loan from an unrelated party amounted to $2,831 and $2,873 as of June 30, 2020 and December 31, 2019, respectively. Loan from an unrelated party are interest free, without collateral, and due on demand.

 

NOTE 7 - DUE TO RELATED PARTIES

 

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attain adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

 

As of June 30, 2020 and December 31, 2019, the amounts outstanding were $85,108 and $92,152. The advances were non-interest bearing, due upon demand and unsecured from the CEO and also the shareholder of the company.

 

 

NOTE 8 - STOCKHOLDERS’ EQUITY (DEFICIT)

 

The Company is authorized to issue 75,000,000 shares of common stock with a par value of $0.001 and 10,000,000 shares of preferred stock with a par value of $0.001. There is no preferred stock issued and outstanding as of June 30, 2020.

 

In January 2019, the Company received a deposit for 1,000 shares of common stock at $1.10 per share for total of $1,100 from 1 unrelated party. These shares have been issued in 2019.

 

In May 2019, the Company received a deposit for 2,798 shares of common stock at $1.10 per share for total of $3,078 from 2 unrelated parties. These shares have been issued in May 2020.

 

NOTE 9 – REVENUE

 

The Company entered into two service agreements with an unrelated party (“the client”). The Company provides the following services: 1 assists the client selecting, purchasing and merging with an OTC shell company 2 assist the client opening bank account in US 3 assist the client issuing new shares and registering with registered state and SEC 4 assist the client completing name change 5 provide advice of applying to be listed on Nasdaq. All performance obligations were satisfied as above services were rendered during the period ended June 30, 2020.

 

NOTE 10 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to June 30, 2020 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

 

FORWARD LOOKING STATEMENTS

 

Statements made in this Form 10-Q that are not historical or current facts are “forward-looking statements” made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the “Act”) and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

 

OVERVIEW

 

AllyMe Group, Inc. was organized on August 13, 2014 as a Nevada corporation under Chapter 78 of the Nevada Revised Statutes. The Company’s principal office is located at 10250 Constellation Blvd., Suite 100, Los Angeles, CA 90067. The Company has two subsidiaries, AllyMe Groups, Inc., a Cayman Islands corporation (“AllyMe”) and China Info Technology Inc. (“China Info”). The Company owns approximately 51% of the presently issued and outstanding shares of common stock of AllyMe and China Info is a wholly-owned subsidiary in China.

 

The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act which became law in April 2012. The definition of an “emerging growth company” is a company with an initial public offering of common equity securities which occurred after December 8, 2011 and has less than $1 billion of total annual gross revenues during last completed fiscal year.

 

Overview of the Business

 

The Company was formed as a US corporation to use as a vehicle for providing consulting services, primarily in China. In the second half of 2018, AllyMe Group, Inc. (also referred to as “the Company”) commenced providing consulting services in China principally focused on the development of new-high-tech products marketing and retail sales. As of the date of this report, it has provided services to four (4) clients and has generated approximately $17,000 in revenues. The Company intends to seek additional clients through direct marketing in China. The Company is currently in its early stages and there is no guarantee that it will be successful at any time in the near future or ever.

 

The Company seeks to provide management advisory services to business organizations worldwide. The Company intends to assist smaller developing companies in the development of business models and strategies. The Company’s initial target markets are China and the United States.

 

AllyMe offers business consultancy, marketing consultancy, financial consultancy and business modeling support to its client organizations. It also seeks to provide merger and acquisition consultancy.

 

 

Results of Operations

 

Three Months Ended June 30, 2020 Compared to June 30, 2019

 

The following table summarizes the results of our operations during the three months ended June 30, 2020 and 2019, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current three-month period to the prior three-month period:

 

Line Item		6/30/20				6/30/19				Increase (Decrease)				Percentage Increase (Decrease)
Revenues		$	346,059			$	5,000			$	341,059				6,821	%
Cost of Revenues			25,030				-				25,030				100	%
Operating expenses			64,932				48,231				16,701				35	%
Net profit (loss)			277,296				(43,438	)			320,734				738	%
Profit (Loss) per share of common stock			0.01				(0.00	)			0.01				inf.

 

We recorded a net profit of $277,296 for the three months ended June 30, 2020 as compared with a net loss of $43,438 for the three months ended June 30, 2019, due primarily to a substantial increase in revenues. The increase in revenues is mainly due to the company’s consulting service income from providing listing consulting services to customers.

 

Six Months Ended June 30, 2020 Compared to June 30, 2019

 

The following table summarizes the results of our operations during the six months ended June 30, 2020 and 2019, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current six-month period to the prior six-month period:

 

Line Item		6/30/20				6/30/19				Increase (Decrease)				Percentage Increase (Decrease)
Revenues		$	346,059			$	5,000			$	341,059				6,821	%
Cost of Revenues			25,030				-				25,030				100	%
Operating expenses			85,793				105,574				(19,781	)			(19	)%
Net profit (loss)			254,627				(100,871	)			355,498				352	%
Profit (Loss) per share of common stock			0.01				(0.01	)			0.02				200	%

 

We recorded a net profit of $254,627 for the six months ended June 30, 2020 as compared with a net loss of $100,871 for the six months ended June 30, 2019, due primarily to a substantial increase in revenues. The increase in revenues is mainly due to the company’s consulting service income from providing listing consulting services to customers.

 

Liquidity and Capital Resources

 

As of June 30, 2020, we had total assets of $232,203, working capital of $101,571 and an accumulated negative deficit of $168,661. Our operating activities used $255,840 in cash for the six months ended June 30, 2020, while our operations used $65,494 cash in the six months ended June 30, 2019. We had revenues of $346,059 in the six months ended June 30, 2020 compared to revenues of $5,000 in the prior year same period.

 

Management believes that the Company’s cash on hand will be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on loans from our principal shareholders and their affiliated companies to provide us with working capital as required. There is no guarantee that such funding will be available when required and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future.

 

 

At June 30, 2020, the Company had loans and advances from a related party shareholder in the aggregate amount of $85,108, which represents amounts loaned to the Company to pay the Company’s expenses of operation. These advances are payable on demand.

 

Coronavirus Pandemic

 

The outbreak of COVID-19 coronavirus in China starting from the beginning of 2020 has resulted reduction of working hours for the Company. The Company followed the restrictive measures implemented in China by suspending operations until conditions permit the re-starting of operations. The recent developments of COVID-19 are expected to result in reduced operations. Other financial impacts could occur though such potential impact is unknown at this time.

 

Off Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.

 

Seasonality

 

Our operating results are not affected by seasonality.

 

Inflation

 

Our business and operating results are not affected in any material way by inflation.

 

Critical Accounting Policies

 

The Securities and Exchange Commission issued Financial Reporting Release No. 60, “Cautionary Advice Regarding Disclosure About Critical Accounting Policies” suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, the Securities and Exchange Commission has defined the most critical accounting policies as the ones that are most important to the portrayal of a company’s financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates. Due to the fact that the Company does not have any operating business, we do not believe that we do not have any such critical accounting policies.

 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), as of June 30, 2020. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are not effective to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that our disclosure and controls are not designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; (3) ineffective controls over period end financial disclosure and reporting processes and (4) lack of timely communications with vendors and proper accrual of expenses.

 

Management believes that the material weaknesses set forth in items (2), (3) and (4) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes (including corrective actions with regard to significant deficiencies or material weaknesses) in our internal controls over financial reporting that occurred during the three months ended June 30, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

There are no legal proceedings which are pending or have been threatened against us or any of our officers, directors or control persons of which management is aware.

 

ITEM 1A. RISK FACTORS

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

 

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES

 

Except as may have previously been disclosed on a current report on Form 8-K or a quarterly report on Form 10-Q, we have not sold any unregistered securities during the past three years.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

Not applicable.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

Exhibit No.		Description
31.1		Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

 

 

SIGNATURES

 

In accordance with the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

	ALLYME GROUP, INC.
Date: September 16, 2020	By	/s/ Zichang Wang
		Zichang Wang
		Director, CEO, CFO, President and Treasurer